DC assets concentrated with top 5 managers

Of the $6.4 trillion in defined contribution assets managed by the 40 largest managers, the five largest controlled more than 63% of the market as of June 30. The market share for the top five managers has risen sharply over the past five years, particularly relative to the 40 largest as a whole. The five-year compound annual growth rate for the five largest was 7.71%, while the managers ranked six through 40 declined by about 1.5%.

Vanguard Group led all DC managers with $1.4 trillion in DC assets as of June 30, followed by BlackRock ($954.4 billion) and Fidelity Investments ($772.6 billion). Of the top 10 managers at the end of 2007, five remain. Fidelity fell to third from first, while Vanguard jumped to the top spot from fourth. Vanguard and BlackRock were prime movers by more than tripling their assets over the period. T. Rowe Price also saw significant growth, which is notable because it primarily manages active funds in a time when many investors are indexing.